 |
"The Summer Boom: Leveling Out?"
The President's Message, July / August 2000
by Randall D. Holler, Manufactured Structures Corporation |
Suppliers in the Midwest are reporting that the U.S. economy is softening. And
modular dealers that I have spoken with seem to agree. At this point, we are
still in the summer "boom," but the late fall and winter might be a little lean
at the manufacturing level.
It seems that our manufacturing sector enjoys prosperity based upon economic
growth. Many manufacturers use a large portion of the production capacity to
supply dealers' lease fleet needs. As the economy slows, dealer utilization
rates decline and the need for new inventory lessens. Initially, there are
certain to be spot shortages. For example, a dealer may have a glut of eight
foot wide units in the yard, but no twelve foot wide models. But as the economy
continues to soften, the need for new product, especially standard lease fleet
product, would continue to diminish for all with the exception of new firms or
branches.
During my 26 years in manufacturing, it appears to me that we have often lagged
the economy during both slow downs and subsequent recoveries. One theory argues
that this in part occurs because as expansion diminishes, some firms look
toward factory-built structures as a temporary solution to space needs while
they ponder fluctuations in the economy. In other words, "before we invest a
million dollars in a new office, let's rent a modular building and see what
happens during the next year."
It will be interesting to watch the U.S. economy as Alan Greenspan and the
Federal Government continue to put on the brakes and as America turns its
attention towards elections.
In other news . . .
MBI Seals
Feedback from the MBI membership on the newly adopted seals program has been
excellent. A portion of the MBI Summer Conference was set aside to present the
seals program and the floor was opened for discussion.
As seals are ordered by manufacturer and integrated members, association
revenues continue to increase. We have not yet, however, reached the $ 50,000
mark triggering the search for a public relations director for the MBI. We
still have half of the Year 2000 remaining, though. Remember, manufacturers
must come into compliance of the seals program by December 31, 2000 to avoid
membership termination.
Thank You
I would like to thank Anthony Razzano for his time and efforts on the MBI Board
of Directors. Anthony is no longer with GE Capital Modular Space and has taken
a position outside the modular industry. He represented GE Capital as well as
other MBI dealer members very well. We will certainly miss Anthony's service.
Welcome
Greg Hanlon of GE Capital will fill Anthony's vacant seat. Greg is vice
president of project sales at GE with 15 years of industry experience. Greg
leads GE's project sales management team and has a strong record of customer
service and operational expertise. His experience has included positions in
sales, sales management, and quality assurance. Greg holds a degree in business
administration and sociology/anthropology from Lycoming College and a MBA from
Pennsylvania State University. We all look forward to working with Greg and can
assure him of many important association decisions and committee work requiring
his attention.
Tiger Woods
Tiger has no need to fear the golfing prowess of the MBI Board. At a recent
Board outing, we could not threaten his dominance even as a four-person
scramble team! We did, however, get to unwind and catch up on happenings since
our last board meeting. I encourage you to consider serving on the Board. Just
as I have, you could gain a lot of valuable knowledge and invaluable
friendships.
|